The Millipede
25 Mar 2015
Re: Ridiculous. I do not think this move is as crazy as it seems. Drilling for oil is an exceptionally risky business and, in terms of owning shares in oil exploration plays IMO more money can usually be made on speculation and on enthusiasm than on actual drill results (which, across the sector, over the past five plus years, have been poor, including in the Falklands).It is always worth bearing in mind that there is a higher chance of drill failure than success IMO whatever the so called experts over on FOGL and RKH will tell you about the chance of success this year.What is more, FOGL is valued at around £150m which, for a company that will have spent all its cash within the next year, already implies quite a bit of drill success. Sure Desire reached a pre drill market cap of £500m last time round but most of the investors who were here then have left AIM for good and I think it is becoming apparent that FOGL is not going to be ramped any higher on speculation alone. And it will need some good results even to stand still going forward IMO.
TX2
20 Mar 2015
Re: Ridiculous. How could FKL possibly know anything?Nobody knows the success or otherwise of drilling before it starts,we assume FOGL,based on surveys, feel it is a worthwhile risk but any drilling is very high risk.I hope it is a success for FOGL investors and ultimately oil brings investment opportunities to the Falklands.I assume FKL see the opportunity to profitably take some money off the table and have it available for future investment.I admit my interest in FKL is in their present business activities,and potential opportunities in Falklands and their other businesses.I am not looking at FKL or investing in it as an exploration play,in fact I hold no investments in exploration companies(I don't have the skills to pick the right opportunities or perhaps nerve!) , so perhaps we are looking at things from a different perspective,my interest being speciality smallcap companies with interesting businesses outside the exploration field.
pumstock
20 Mar 2015
Re: Ridiculous. I think you will find that if your read the very last two lines of the recent RNS re new chairmanwe are going to be moving in new directions soon.This is probably raising cash for that purpose.Next 6 months could be very interesting for several reasons. Certainly hope so
pond1
20 Mar 2015
Re: Ridiculous. The only way they are directly connected to Fogl is via their shareholding, the same way as we all are apart from presumably the amount of shares held, so i can't see how selling the majority of their holdings can allow them to further concentrate on their other investments, unless of course they needed money urgently, something I doubt.There may be a hidden agenda, but I for one can't fathom what it is.I just hope they don't know something we don't.
TX2
19 Mar 2015
Re: Ridiculous. I think FKL basically wishes to disconect itself from direct investment in exploration in Falklands oil and concentrate on its invstments in the Falklands & unrelated investments elsewhere.If Falklands oil exploration is a success and is likely to lead to requirement for more oil related infrastructure on the islands it has funds available,FKL has potential land for industry & housing & I think port facilities that could be developed.If these are not required the capital can be deployed elsewhere.FKL has no idea as has everybody whether FOGL( or anyone elses drilling )will be a success but it is hedging its bets by selling part of its FOGL shares now and perhaps the rest after drilling,yes it will make less if the drill is a success but if it is not it has less to lose.
Ekati
19 Mar 2015
Re: Ridiculous. When good results come in, it will be looked at as a silly move imo.
pond1
19 Mar 2015
Re: Ridiculous. I appreciate they have de-risked, just seems to my mind as a daft thing to do just before drill results start to come through.Yes they still have 5 mill shares, but they sold 7.825million shares, so over half sold.Does it not show lack of confidence.
Ekati
19 Mar 2015
Re: Ridiculous. A bit bizar, indeed. But probably they wouldn't take any risk to loose money on FOGL. And they must be sure they can invest the proceeds more lucrative than we think?They got 29,30p for ashare if I di the maths correctly.
Ovets47
19 Mar 2015
Re: Ridiculous. There must be a good reason, but it does seem a bit odd.Initial thought is that someone already knows that Zebedee is looking to be a duster, but I can't really believe that anyone can be sure of that yet.Maybe there's a tax reason.Like you, perplexed!
pond1
17 Feb 2015
Re: Oil price no worry for FKL Agree Millipede, apart from the 'My plan is to keep these forever and see how that approach works'.Forever is a long time, as for me its the timing of the sale that hopefully will pay for a few weeks on an exotic beach somewhere with plenty left over.
The Millipede
16 Feb 2015
Re: Oil price no worry for FKL "I think my investing style must be the complete opposite to yours"Ha ha. You are probably right TX2, although I really like FKL - it seems rare to find (or rare for me to find) a company with a relatively low risk, cash generating sustainable business with good management listed on AIM, especially one with a high risk side thrown in effectively for free, with no froth and hype. They just do what they do and seem to be competent. My plan is to keep these forever and see how that approach works.And, at the end of the day, I do not think anyone can play the crazy AIM casino forever and live to tell the tale and I think of investing here as the beginnings of an exit strategy. It might take a while but needs to happen sooner or later - otherwise I will just end up frittering away my capital like most others! I have given up on all the popular stocks bar one...... so the tablets are obviously working. 
TX2
16 Feb 2015
Re: Oil price no worry for FKL I think my investing style must be the complete opposite to yours TM,I rarely buy any companies that do not pay divis,and preferably have the cash flow to support and hopefully improve them!So hopefully collectively we are correct here.FKL has invested a fair amount recently in its retail stores esp its largest outlet and also in its garage business Falklands 4X4 which has its own website.FKLs website gives a lot of detail on the companys Falklands and other operations.While 2015 prospecting should bring in some business if the drilling operations require local supply;I don't think we will get major additional business unless & until we see oil production when we would see production & service crew on the island.FKL owns already a fair amount of housing plus commercial & housing development sites.Presently apart from increasing the business offer to locals the biggest additional source of income is tourism including cruise visits.
The Millipede
16 Feb 2015
Re: Oil price no worry for FKL Hello pond1, Thanks. To be honest, I can see the point of having diversification in this company because although I think that FIC will do well out of the 2015 campaign - and will certainly survive poor drilling results (unlike perhaps FOGL) - if the drill results this year are poor it probably won't grow much for the foreseeable. So worth branching out. Just my view. Probably wrong.Anyway what with a new Chairman I have bought in here this morning in a small way, and also added a small extra number of FOGL shares. I am wary of making any predictions - and have really only recently come to the conclusion that FOGL, rather than Rockhopper, is the way to play this year (although I also own PMO) but am not in the mood to go "all in" on a stock that is such a high risk play on drill results...... although I intend to hold through the drills.Let's see. Here's hoping...... am rather unused to owning dividend paying stocks. All the best,
The Millipede
15 Feb 2015
Re: Oil price no worry for FKL Thanks Ekati, It just seems a little unusual these days. Not saying I do not like it. I am thinking about this in part as a relatively low risk way of gaining exposure to the oil campaign and it certainly seems to tick that box. But in general I can happily not put all my eggs in one basket by buying several different stocks.
Ekati
15 Feb 2015
Re: Oil price no worry for FKL Unfocused? Focused on shareholder value on the long term, that's what I'm looking for for my investments. Putting not all your eggs in one basket.The oil came only relativetely recently in the picture.Money is spend i suppose on preparations for infrastructure port and landholdings. Also on new ferry's Portsmouth, expansion Momart etc.greets,
